Does Public-Sector Employment Fully Crowd Out Private-Sector Employment?

Alberto Behar () and Junghwan Mok

No 2013-20, CSAE Working Paper Series from Centre for the Study of African Economies, University of Oxford

Abstract: We quantify the extent to which public-sector employment crowds out private-sector employment using specially assembled datasets for a large cross-section of developing and advanced countries. Regressions of either private-sector employment rates or unemployment rates on two measures of public-sector employment point to full crowding out. This means that high rates of public employment, which incur substantial fiscal costs, have a large negative impact on private employment rates and do not reduce overall unemployment rates.

Keywords: Employment; Crowding out (search for similar items in EconPapers)
JEL-codes: H59 J21 J23 J68 (search for similar items in EconPapers)
Date: 2013
New Economics Papers: this item is included in nep-lab
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Citations: View citations in EconPapers (19)

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Related works:
Journal Article: Does public‐sector employment fully crowd out private‐sector employment? (2019)
Working Paper: Does Public-Sector Employment Fully Crowd Out Private-Sector Employment? (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:csa:wpaper:2013-20

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